The Pennsylvania Legislature recently amended the Second Class County Port Authority Act, 55 P.S. §§551-563.5, to, among other things, transfer jurisdiction over certain passenger transportation services occurring in Allegheny County from the Port Authority of Allegheny County (“Port Authority”) to the Pennsylvania Public Utility Commission (“PUC”). Prior to the amendments, jurisdiction over certain types of passenger service in Allegheny County, such as scheduled route, paratransit and airport transfer, resided with the Port Authority.

The Pennsylvania Public Utility Commission (“PUC”) caused quite a stir with its August 16, 2012 Order[1] that partially approved the jointly filed default service plans of the four First Energy electric utility affiliates serving in Pennsylvania.

[1]Joint Petition of Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company for Approval of their Default Service Programs, Docket Nos. P-2011-2273650et al. (Order entered August 16, 2012)(“First Energy Order”) .

On August 21, 2012, the Court of Appeals for the District of Columbia struck down the EPA’s Cross State Air Pollution Rules, also known as the Transport Rules, that governed the emissions reduction responsibility of 28 upwind states – including Pennsylvania -- under the “good neighbor” provisions of the Clean Air Act (“CAA”). EME Homer City Generation L.P. v. EPA, No. 11-1302 (D.D.C. August 21, 2012)(Kavanaugh, J. on the opinion, joined by Judge Griffith). The “good neighbor” provisions of the CAA require that upwind states prevent sources within their borders from emitting pollution that “contributes significantly” to downwind states’ nonattainment of federal air quality standards. The EPA adopted the Transport Rules in August 2011 to define the “good neighbor” obligations for two emissions: sulfur dioxide (SO?) and nitrogen oxide (NO?).

Providing a win to competitive suppliers, the Pennsylvania Public Utility Commission (“PUC”) at its July 19 public meeting unanimously denied PPL’s request for a migration rider for default service customers.

Historically the Pennsylvania Public Utility Commission (PUC) has permitted natural gas distribution companies (NGDCs) to use flexible pricing or “flex” contract rates to attract or retain large customers who have other energy alternatives. The reasoning has been that “half a loaf is better than none,” and that such revenues, which cover and exceed marginal cost, contribute positively to overall cost of service. The result is a benefit to the large customer, the utility, and all customers generally. Moreover, in terms of retaining a customer, the argument in favor of the status quo is that other ratepayers benefit as they do not bear the revenue burden of stranded investment or a smaller revenue pot over which to apply costs. The NGDCs have generally been able to recover from other ratepayers the difference between the “flex” rate and what would have otherwise been charged under an ordinary general tariff rate.

Solar developers are finding that Pennsylvania funding sources for solar development are drying up with no plans of replenishing the pool. The dearth of available solar grants could not come at a worse time. On May 17, 2012, the U.S. Commerce Department announced stiff tariffs on Chinese-made solar panels raising costs on most future solar projects.

The Pennsylvania Public Utility Commission will now decide whether migration riders will be permitted for electricity customers, at the same time it is moving forward with its Retail Markets Investigation and its notable efforts to make the electricity markets more competitive.

Does a natural gas company that is not currently authorized to provide service in a territory, but with future plans to file for such authorization, have standing to contest another gas company’s application to provide service in that same territory? This issue was addressed in an Initial Decision by ALJ David A. Salapa, who answered it in the negative. Application of Leatherstocking Gas Co., L.L.C. for Approval To Supply Natural Gas Service to the Public, A-2011-2275595 (Initial Decision, issued March 20, 2012).

The PUC yesterday took a big first step toward creating an electricity market where most customers are served by competitive suppliers, and not by utilities, and unanimously voted to adopt recommendations for the next round of default service plans that will be filed by Pennsylvania’s electric utilities.

Two electric distribution companies, First Energy and PECO Energy Company, have filed their default service plans for service that will begin in 2013 – before the PUC has issued final guidance on what those plans should include.

Under Pennsylvania’s Storage Tank and Spill Prevention Act, owners, operators and installers of underground storage tanks who incur liability for cleanup of tank spills are entitled to reimbursement from the Underground Storage Tank Indemnification Fund under certain circumstances, but only if they advise the Fund of a claim within 60 days “after the confirmation of a release.”

Small group plan health insurance rate increases of more than 10% must be filed and approved by the Pennsylvania Insurance Department under a new law signed by Governor Corbett in late December, 2011. The expanded authority under Act 134 to review small group health plan rates in Pennsylvania comes in response to provisions in the Patient Protection and Affordable Care Act (PPACA) that give the federal government the authority to disapprove such increases unless they are reviewed at the state level.

On January 3, 2012, the Pennsylvania Department of Agriculture (PDA) issued a Special Bulletin extending the deadline for persons who own fuel oil delivery trucks to comply with section 3.31 of the National Institute of Standards and Technology (NIST) Handbook 44. Section 3.31 of NIST requires installation of special equipment on fuel oil delivery trucks so that proper testing can be performed for temperature adjusted product. The deadline for the installation of this equipment has been extended from July 1, 2011 to October 1, 2012.